WASHINGTON (Reuters) -U.S. President Donald Trump is not considering a "straight, two-year" extension of Obamacare subsidies, the White House said Tuesday.
The Trump administration was preparing a health-policy
framework that would extend Affordable Care Act (ACA) insurance premium subsidies for two years, Politico reported on Monday.
White House spokeswoman Karoline Leavitt said on Tuesday that "contrary to fake news reporting, President Trump is not considering a straight two year subsidy extension".
Millions of enrollees in the ACA health insurance programs, also known as Obamacare, face sharp premium increases if the subsidies are allowed to expire on December 31 with no replacement, placing fresh attention on healthcare affordability.
"The President is having ongoing conversations with members of his administration, members of Congress, and private sector experts," Leavitt said.
Shares of health insurers Oscar Health slipped nearly 4% and Centene fell more than 2% in extended U.S. trading.
Insurers have been bracing for the uncertainty associated with the large premium hikes and possible enrolment declines in 2026.
Americans relying on subsidies to afford Obamacare health insurance are holding off on enrolling as they face 2026 premium hikes that could more than double.
Democrats' demand for an extension of the subsidies was the core issue in Congress that led to the federal government shutdown that ended earlier this month.
(Reporting by Steve Holland in Washington and Sriparna Roy in Bengaluru; Writing by Christian Martinez; Editing by Arun Koyyur)
